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What you need to Lunch Break Invest
There are a few things you will need to use the Lunch Break Investing strategy. If you are reading this, chances are you have most of them.
1. Computer Access (I know, duh!)
If you do not have easy internet access then a laptop or netbook will be useful. For security reasons I would recommend mobile broad band. This is the most important item on the list.
2. Stock Watch List
This is your master cheat sheet. Put it somewhere you can easily access it. List the stock symbol and buy price. When the stock is close to your buy point, buy!
3. Written Strategy
It must be written and accessible. Following your written rules will eliminate some emotion and will protect your capital. Never guess on your rules. Write them down and follow them!
4. Cell Phone
Not really a must, but can be very useful. A smartphone, like an iPhone, is not a replacement for a good laptop/netbook, but it can give you quick easy access. I have bought stocks sitting in my car waiting on my kids to leave school. Getting text message alerts on stocks is also useful.
Post your list of necessities in the comments. I would love to see how everyone is using technology and gadgets to do better investing.
Happy trading!
Lunch Breaking Investing Rulebook
After careful consideration, I have decided to try a new investing strategy. I’ve found that I do not have time to use the traditional rules. My rules will have to fit my time constraints. In other words, it has be easy and simple enough to do during my lunch hour.
Here are my Lunch Break Investing Rules:
1. Only buys stocks on the watch list.
2. Must be trending upward.
3. Must have a trending sweep of at least 10%.
4. Buy only at the bottom trend line.
5. Set a loss limit (2-3%).
5. Set a trailing stop loss to 8% below the bought price (dollar amount on the stop loss, not percent)
6. Set a profit limit (5-10%).
6. Allow the stock to trend upward until trailing stop loss is activated.
7. Never break any of these rules.
8. Adapt my strategy as needed.
Over the next several weeks I will be expanding on each of these items. I will also concentrate on the automation and mobile techniques.
Comment and share!
How to Find Companies Worth Investing – Part II – Components
In my post, How To Find Companies Worth Investing – Part I, I talked about investing in companies that make the products that you use and love. Now let’s look at companies that help make those products happen.
Let’s say you don’t want to invest in HP or Apple. What about the companies that make the components of their products?
Typical Components Inside a Computer:
CPU – Intel (INTC) or AMD (AMD)
Video card – Nvidia (NVDA), ATI (part of AMD)
Monitor – HP (HPQ), LG (KRX)
There are plenty of excellent companies that you can find that make the bits and pieces of your favorite products. Do a search on google or wikipedia to find who makes what.
Happy trading!
How To Find Companies Worth Investing – Part I
Peter Lynch is well known for saying, “Invest in what you know”. With that in mind, one good place to find companies to invest is the grocery store or mega super store that is the size of a small country. The products that you buy, use, consume and generally can’t live without are made by some of the best companies to invest. List your 5 favorite products and do some homework.
Here are my 5:
1. Tide
2. Starbucks coffee (it helps me write)
3. Coke Zero
4. Doritos
5. Cheez-its
What companies make these products?* A quick search on Wikipedia shows:
1. Tide – Proctor & Gamble Co. (PG)
2. Starbucks – Starbucks Corp. (SBUX)
3. Coke Zero – Coca-Cola Company (KO)
4. Doritos – PepsiCo, Inc. (PEP)
5. Cheez-its – Kellogg Company (K)
That was easy! I now have 5 companies to do my investing homework. On your next visit to the grocery store, check out a few of your favorite products. Who makes them? Leave a comment below and have fun trading!
* These stocks are listed for example purposes only and I do not endorse these companies. Remember to always investigate and consider the risk before investing.
